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Global Power Equipment Group Inc. Reports Earnings for the Three and Nine Months Ended September 30, 2009
TULSA, Okla., Nov. 30 /PRNewswire-FirstCall/ -- Global Power Equipment Group Inc. (Pink Sheets: GLPW) ("Global Power") today published its unaudited financial results for the three and nine months ended September 30, 2009. These results are available for review at www.pinksheets.com under the ticker symbol GLPW, and on the Company's website at www.globalpower.com.
For the three months ended September 30, 2009, the Company reported revenues of $95.8 million and net income of $1.8 million, or $0.01 per diluted common share. Revenues for the three months ended September 30, 2008 were $129.9 million and a net income of $17.0 million, or $0.12 per diluted common share. For the nine months ended September 30, 2009, the Company reported revenues of $377.6 million and net income of $31.9 million, or $0.23 per diluted share. Revenues for the nine months ended September 30, 2008 were $398.6 million and net income of $24.6 million, which included $25.8 million of reorganization expenses, or $0.19 per diluted share.
"We are clearly disappointed in the quarterly earnings which were negatively impacted by a significant cost overrun on a contract in our Products Division," stated David Keller, Global Power's President and Chief Executive Officer. "On a positive note, our Services Division completed another solid quarter and increased their backlog by $41.6 million, up 26.2%. In addition, we increased our overall cash position by $14.1 million during the quarter, to a total of $97.7 million. The strength of our balance sheet confers major operating advantages and positions us to consider a broad range of strategic alternatives to create shareholder value."
The Company's gross profit for the three and nine months ended September 30, 2009, totaled $14.0 and $68.1 million representing 14.7 and 18.0 percent gross margin compared to gross profit of $25.8 and $71.8 million, or 19.8 and 18.0 percent gross margin, for the three and nine months ended September 30, 2008. EBITDAR (earnings before interest, taxes, depreciation and amortization and reorganization expense) from continuing operations was $4.3 and $36.3 million for the three and nine months ended September 30, 2009, as compared to $16.0 and $44.2 million for the three and nine months ended September 30, 2008. EBITDAR is a non-GAAP financial measure. A reconciliation of our net income to EBITDAR is included in the schedules attached to this press release.
Interest expense for the three and nine months ended September 30, 2009, was $2.4 and $7.2 million, respectively. For the three and nine months ended September 30, 2008, interest expense was $2.8 and $8.6 million, respectively. As of September 30, 2009, the Company had no draws under its revolving credit facility.
At September 30, 2009, the Company's backlog totaled $322.6 million compared to $288.0 million at June 30, 2009 and $376.8 million as of September 30, 2008. In addition, the Company had cash and cash equivalents of $97.7 million at September 30, 2009.
The Company will host a conference call on Tuesday, December 1, 2009 at 1:00 PM CT. The numbers to call for this teleconference are: within the United States and Canada (800) 870-4027, outside North America (213) 416-2975. A playback of the call will be available from 4:00 PM CT on December 1, 2009 through midnight CT on December 15, 2009, by calling: within North America (800) 675-9924, outside North America (213) 416-2185. The replay ID code is 12109.
About Global Power
Oklahoma based Global Power Equipment Group Inc. is a leading design, engineering and manufacturing firm providing a broad array of equipment and services to the global power infrastructure, energy and process industries. Through its Global Power Services Division, the Company is a leading provider of on-site specialty support and outage management services for commercial nuclear reactors in the United States and provides maintenance services to fossil and hydroelectric power plants and other industrial operations. Through its Global Power Products Division the Company designs, engineers and manufactures a comprehensive portfolio of equipment for gas turbine power plants and power-related equipment for industrial operations, with over 40 years of power generation industry experience. With a strong competitive position in its product lines, the Company benefits from a large installed base of equipment in domestic and international markets. Additional information about Global Power Equipment Group may be found at www.globalpower.com.
Forward-looking Statement Disclaimer
Statements contained in this release regarding the Company's or management's intentions, beliefs, expectations, or predictions for the future, including, but not limited to, those regarding anticipated operating results and the publication of any such results, are forward-looking statements within the meaning of U.S. federal securities laws and are subject to a number of known and unknown risks, assumptions and uncertainties that could cause the Company's actual results to differ materially from those projected, including the effects of the current financial turmoil and the associated global recession, decreased demand for new gas turbine power plants, the loss of any of our major customers, the cancellation of projects, project cost overruns, including increases in prices for energy or for materials such as steel, and unforeseen schedule delays, competition for the sale of our products or services, poor performance by our subcontractors, warranty and product liability claims and changes in the economic, social and political conditions in the United States and other countries in which we operate, including fluctuations in foreign currency exchange rates and the banking environment and monetary policy. The Company assumes no obligation to update publicly such forward-looking statements, whether as a result of new information, future events or otherwise.
The table below represents the operating results of the Company for the periods indicated:
GLOBAL POWER EQUIPMENT GROUP INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
------------- -------------
2009 2008 2009 2008
---- ---- ---- ----
(Unaudited) (Unaudited)
Products
revenue $38,272 $78,718 $153,692 $220,905
Services
revenue 57,512 51,198 223,871 177,670
------ ------ ------- -------
Total
revenues 95,784 129,916 377,563 398,575
Cost of
products
revenue 30,811 59,086 110,925 170,224
Cost of
services
revenue 50,950 45,068 198,583 156,542
------ ------ ------- -------
Cost of
revenues 81,761 104,154 309,508 326,766
------ ------- ------- -------
Gross profit 14,023 25,762 68,055 71,809
Selling and
administrative
expenses 10,936 10,745 34,812 30,546
------ ------ ------ ------
Operating
income 3,087 15,017 33,243 41,263
Interest
expense 2,412 2,790 7,242 8,644
Reorganization
expense 192 666 295 25,807
Income tax
expense (benefit) (530) (176) 1,975 702
---- ---- ----- ---
Income from
continuing
operations 1,013 11,737 23,731 6,110
Discontinued
operations:
Income (loss) from
discontinued
operations,
net of tax (1,709) 5,260 5,640 18,501
Gain on
disposal,
net of tax 2,535 - 2,535 -
----- --- ----- ---
Net income $1,839 $16,997 $31,906 $24,611
====== ======= ======= =======
Basic earnings
per weighted
average common
share:
Income from
continuing
operations $0.01 $0.09 $0.17 $0.05
Income from
discontinued
operations - 0.04 0.06 0.14
--- ---- ---- ----
Income per
common share
- basic $0.01 $0.13 $0.23 $0.19
===== ===== ===== =====
Weighted
average number
of shares of
common stock
outstanding -
basic 136,406,184 134,586,541 135,922,144 127,503,374
=========== =========== =========== ===========
Dilutive
earnings per
weighted average
common share:
Income from
continuing
operations $0.01 $0.09 $0.17 $0.05
Income from
discontinued
operations - 0.03 0.06 0.14
--- ---- ---- ----
Income per
common share
- diluted $0.01 $0.12 $0.23 $0.19
===== ===== ===== =====
Weighted
average
number of
shares of
common stock
outstanding
- diluted 141,662,554 137,421,671 138,445,435 130,054,940
=========== =========== =========== ===========
GLOBAL POWER EQUIPMENT GROUP INC. AND SUBSIDIARIES
SUPPLEMENTAL STATISTICAL INFORMATION
(in thousands)
Three Months Ended Nine Months Ended
September 30, September 30,
------------ ------------
2009 2008 2009 2008
---- ---- ---- ----
(unaudited) (unaudited)
Income from continuing
operations $1,013 $11,737 $23,731 $6,110
Add back:
Income tax provision
(benefit) (530) (176) 1,975 702
Interest expense 2,412 2,790 7,242 8,644
Change in fair value
of foreign exchange
contracts 474 - 249 -
Depreciation and
amortization 765 974 2,821 2,924
Reorganization items 192 666 295 25,807
--- --- --- ------
EBITDAR from continuing
operations (a) $4,326 $15,991 $36,313 $44,187
====== ======= ======= =======
(a) EBITDAR from continuing operations represents net income plus income
taxes, interest, reorganization items, depreciation and amortization.
While considered the most common definition used by investors and
financial analysts, the EBITDAR presented above may not be comparable
to similarly titled measures reported by other companies. The
Company believes that EBITDAR, while providing useful information,
should not be considered in isolation or as an alternative to other
financial measures determined under GAAP.
GLOBAL POWER EQUIPMENT GROUP INC. AND SUBSIDIARIES
HIGHLIGHTS FROM CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
September 30, December 31,
2009 2008
---- ----
ASSETS (unaudited)
Current assets:
Cash and cash equivalents $97,694 $57,633
Accounts receivable,
net of allowance 50,128 55,953
Inventories 4,887 4,963
Costs and estimated
earnings in excess of billings 38,757 55,922
Other current assets 11,562 10,329
------ ------
Total current assets 203,028 184,800
Property, plant and equipment, net 13,127 12,610
Other long-term assets 102,966 103,629
------- -------
Total assets $319,121 $301,039
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt $5,000 $19,675
Accounts payable and accrued
liabilities 40,083 30,640
Billings in excess of costs and
estimated earnings 32,237 36,728
Deferred revenue 4,590 8,695
Other current liabilities 20,416 19,394
------ ------
Total current liabilities 102,326 115,132
Long-term deferred tax liability 11,100 11,100
Other long-term liabilities 3,636 3,605
Long-term debt, net of
current maturities 61,575 65,325
Liabilities subject
to compromise 335 604
Total stockholders' equity 140,149 105,273
------- -------
Total liabilities and stockholders'
equity $319,121 $301,039
======== ========
GLOBAL POWER EQUIPMENT GROUP INC. AND SUBSIDIARIES
HIGHLIGHTS FROM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Nine Months Ended September 30,
-------------------------------
2009 2008 (a)
------------ --------------
(Unaudited)
Net cash provided by (used in) operating
activities $58,529 $(149,972)
Net cash used in investing activities (1,352) (2,292)
Net cash provided by (used in) financing
activities (18,490) 132,127
Effect of exchange rate changes on cash 1,374 (500)
----- ----
Net change in cash and cash
equivalents $40,061 $(20,637)
======= ========
(a) For the nine months ended September 30, 2008, cash flows from operating activities include payment of allowed claims pursuant to the Plan of Reorganization in addition to general working capital requirements. Cash provided by financing activities for the nine months ended September 30, 2008 was comprised of proceeds from the Rights Offering and proceeds from the Exit Credit Facility, a portion of which was offset by a decrease in amounts due on the Debtor-in-Possession Facility which was paid in full upon emergence.
Company Contact: ---------------- Candice Cheeseman Vice President of Administration and General Counsel Global Power Equipment Group Inc. (918) 488-0828
SOURCE Global Power Equipment Group Inc.
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